Solera Acquires CAP Automotive For $463.8 Mln - Quick Facts

(RTTNews) - Software company Solera Holdings, Inc. (SLH) Thursday said it acquired car valuation firm CAP Automotive to bolster its presence in the different stages of vehicle life ranging from purchase to sale or salvage.

Solera, which works in the auto-insurance industry, will buy the UK-based CAP Automotive for $463.8 million in cash.

An estimated 12-year tax benefit of around $35 million, as well as the ability to use NOLs through 2018 for an estimated $6.5 million, can be derived from the acquisition, according to Solera. Adjusting for the estimated value of the tax benefit and NOLs, the consideration for CAP is $422.8 million.

The company expects the acquisition to boost cash per-share earnings by about $0.01 in fiscal 2015 and by around $0.04 on an annualized basis, net of a recently finished $400 million senior notes private placement, Solera said in a news release.

Excluding the effect of purchase accounting for CAP deferred revenue, Solera expects the acquisition to increase cash per-share earnings by about $0.03 in fiscal 2015 and by $0.05 on an annualized basis.